22 May 20

France advances “sustainable mobility allowance” to avoid congestion

A decree published in the official state journal records the creation of the "sustainable mobility allowance" (forfait mobilité durable), a cornerstone measure in the so-called Mobility Orientation Law (LOM). It replaces the bike allowance.

Its effective date, initially set for July 1, 2020, has been brought forward to May 11, 2020 in order to attempt to curb the increase in car traffic after the end of confinement linked to the Coronavirus epidemic.  

The amount of the sustainable mobility allowance is fixed at 400 euros per year per employee. It can be combined with the reimbursement by the employer of a public transport subscription, but the total sum cannot exceed 400 euros.

The sustainable mobility allowance is exempt from taxes and social contributions and compensates the travel expenses of employees who commute to work by bicycle, in a shared vehicle (carpooling) or even by using an electric, hybrid or hydrogen vehicle. In the case of a personal bicycle, purchase, rental, repair or accessories expenses will be eligible for this sustainable mobility allowance.

“This individual financial encouragement can be decisive when we are developing cycle paths or lanes reserved for carpooling,” said Elisabeth Borne the French Minister for ecological transition in a press release. "In this period of deconfinement, and in order to limit road congestion, we strongly encourage the French to use bicycles, personal transport equipment and to carpool to get around" Secretary of State for Transport, Jean -Baptist Djebbari, added.

The sustainable mobility allowance is not mandatory: it is implemented on a voluntary basis.  

Photo credit: Shutterstock, 2020

Authored by: Dieter Quartier